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On the Basis of Audit Evidence Gathered,an Auditor Decides to Increase

Question 112

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On the basis of audit evidence gathered,an auditor decides to increase the assessed level of control risk from that originally planned.To achieve an overall audit risk level that is substantially the same as the planned audit risk level,the auditor would need to adjust detection risk.a.Explain the audit evidence gathered that led the auditor to the conclusion that control risk must be increased and why the auditor evaluated the evidence in the manner described in the problem.b.Assume that control risk went from .50 to .70,inherent risk is 1.0,and audit risk is .05.Explain the impact of the decision to adjust control risk on the calculation of detection risk.

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a.The auditor planned to place some reli...

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